DreamWorks Swings to Profit
DreamWorks Animation SKG Inc. swung to a profit in the second quarter on strong home video and pay-television performance from its recent hit “Madagascar.”
The Glendale-based film studio reported net income Thursday of $13.7 million, or 13 cents a share, for the quarter, contrasted with a loss of $3.7 million, or 4 cents, in the same period last year.
Revenue rose to $74.9 million from $35.4 million in the same quarter last year.
The company said its outlook for the third quarter had not changed from its previous forecast. Revenue from its latest theatrical release, “Over the Hedge,” is not expected to be booked until the movie is released on home video in the fourth quarter.
Most of the second-quarter revenue came from “Madagascar,” which was released theatrically last summer. A sequel is planned for 2008.
“Over the Hedge” was released in May and has generated $153 million in domestic box-office revenue. DreamWorks Animation did see $10.7 million in revenue in the quarter from the film.
Typically, the company does not get any meaningful revenue from its theatrical releases until after its distributor, Paramount Pictures Corp., recoups its marketing and distribution costs.
Shares of DreamWorks Animation fell 63 cents to $20.30 on Thursday.
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